SEC Discovers Psychology.

The uptick rule was initially created following the stock market
crash of 1929 to prevent bearish investors from ganging up on shares.
After years of economic studies that showed the rule wasn't having an
impact on market volatility, the SEC abolished it in 2007, around the
time financial turmoil was getting under way.

Many traders and others blame the SEC's decision as a factor behind
the precipitous declines of some shares over the past two years. Some
say that the rule's absence hurt investor psychology, even if it didn't
cause market volatility. Reinstating the uptick rule could give the
market "a huge shot of confidence," says Brian Bartsch, a trader with
Cohen Capital Group.

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The uptick rule was initially created following the stock market
crash of 1929 to prevent bearish investors from ganging up on shares.
After years of economic studies that showed the rule wasn't having an
impact on market volatility, the SEC abolished it in 2007, around the
time financial turmoil was getting under way.

Many traders and others blame the SEC's decision as a factor behind
the precipitous declines of some shares over the past two years. Some
say that the rule's absence hurt investor psychology, even if it didn't
cause market volatility. Reinstating the uptick rule could give the
market "a huge shot of confidence," says Brian Bartsch, a trader with
Cohen Capital Group.